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Calculate the cost of new common equity financing of stock Q using Gordon model Stock Q: Last yr dividend= $1.27 Growth rate of dividends= 6%

Calculate the cost of new common equity financing of stock Q using Gordon model

Stock Q:

Last yr dividend= $1.27

Growth rate of dividends= 6%

Selling price of stock= $75.18

Floatation Costs: $3.27

Cost of common Equity: ?

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